by Daniel E. Giroux, Owner, A-Plus Mortgage
In today’s fast-moving purchasing market, a pre-approval has become an important factor in a seller’s decision making process. Pre-approvals are meant to ensure the seller and the seller’s agent and the buyer and the buyer’s agent, the said transaction has been reviewed and will get approved if the offer is accepted. Pre-approvals can sometimes be the reason a purchase offer is not accepted by the seller. For example, an FHA loan requires a property meets certain guidelines including elimination of peeling paint on the outside or inside of the home, so if there is an issue with paint, the FHA loan will not be approved. A VA loan pre-approval can be halted due to a required termite inspection, the buyer is not allowed to pay for it leaving the cost on the seller and if the seller will not pay for the inspection the loan will not be approved.
When a buyer is in the process of being pre-approved their loan originator should continuously explore options for the buyer, doing more than just filling in boxes on an application. The loan originator should verify given information received and put the pieces of the puzzle together to create the best possible option for the buyer.
Furthermore, there is an even more crucial safety aspect of a pre-approval. Besides the obvious monetary risk both the seller and buyer experience during the loan process: inspections, appraisals, repairs done by the seller, the seller’s potential wasted time and money while the property is off the market while waiting if the loan is not approved, there is a physical safety component for the buyer’s agent, seller’s agent and the seller.
When a client is not properly pre-approved, there is no way of knowing who that client is. A proper pre-approval requires numerous items including identification. Proper identification and following a safety protocol ensures the seller that they are not allowing strangers to come into their personal space. This also ensures that they can be more comfortable with whom enters their home. With a good loan originator and buyer’s agent, who gets to know their client, there is less risk of tragedy occurring even for them. In past cases, potential ‘false buyers’ have unlocked windows to return to the home at a later date and some have scanned homes to later steal from the seller. The safety issue for the buyer’s agent is just as crucial, in 2014 Beverly Carter was murdered, in 2011 Ashley Okland was murdered; in 2006, Sarah Anne Walker was stabbed 27 times while showing a home. This is not an uncommon occurrence and we as professional need to do our part to protect everyone involved.
Sellers: Ask your agents if clients coming into your home have been pre-approved, if they have not provided proof of pre-approval, do not allow them into your home for your own safety and protection.
Buyers Agents: Follow up with the company that pre-approved the buyer, ask them if they have veri ed the clients information including a clear copy of their ID.
Sellers Agents: Protect your sellers and demand a copy of a pre-
approval letter prior to showing a property.
Buyers: Do not be offended or upset that you are required to get pre-
approved. If you are really looking for a new home then you should want to be pre-approved before you go shopping.
Maybe I’m being a bit too safe here but it seems like a very easy solution to a potential problem. I personally would not allow a person to come view my home unless they were pre-approved so I can’t understand why anyone would want to let a random stranger into theirs. If you have any questions or would like more information about the SAFE – Pre-approval process at A-Plus Mortgage LLC, call me anytime.